Nigeria’s Minister of Power, Dr. Adebayo Adelabu, has called on the federal government to halt electricity subsidies, warning that their continuation risks the power sector’s collapse.
During a meeting with the heads of Generation Companies (Gencos) in Abuja, Adelabu said the nation’s current economic challenges make it impossible for the government to keep funding these payments to power firms.
The minister disclosed that the government owes power firms at least N4 trillion in subsidies, which has created a cash flow problem and threatens the sustainability of the sector.
Persecondnews recalls that the Gencos had warned that if the situation persists, the sector will collapse soon and also demanded immediate payment of the N4 trillion legacy debt to avert a potential shutdown.
Adelabu noted that Nigerians must face the reality that the federal government no longer has the funds to subsidize the sector.
“We have to understand that our economy cannot sustain subsidies indefinitely”, he said.
As a way out, he said electricity consumers should be prepared for a cost-reflective regime where they pay for what they consume.
The Minister disclosed that a meeting is being planned between President Bola Tinubu and Gencos to discuss how to offset the N4 trillion subsidy debt.
Source: Per Second News
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